Jefferies raises Skyward Specialty Insurance stock price target to $64

Jefferies recently upgraded its price target for Skyward Specialty Insurance Group shares to $64, up from $63, while keeping its Hold rating on the stock. The investment firm maintains a favorable valuation assessment, citing a P/E ratio of 14.85 and a PEG ratio of 0.51. Jefferies attributes the company's growth potential to its diversification, while acknowledging rising competition and disciplined underwriting practices as factors that have tempered growth projections.

The firm anticipates steady combined ratios through 2028, as the pressure on loss ratios is largely balanced by improvements in expense ratios.

Skyward Specialty Insurance Group demonstrates solid financial stability, with a current ratio of 1.91 and a return on equity of 17% over the past year. The company's fee income growth offers an additional avenue for boosting earnings. Analysts view the stock as reasonably priced, with its current valuation trading at 2 times price-to-book value. The price target of $64 translates to an expected total return of 6%.

For more detailed analysis, Jefferies offers a Pro Research Report on SKWD, one of 1,400+ US equities covered, along with ProTips and Fair Value insights. Skyward Group showcased strong performance in its third-quarter 2026 earnings, exceeding expectations with a diluted operating EPS of $1.28, surpassing the forecasted $0.90 by 42.2%.

The company reported revenue of $501.77 million during this period. Despite the positive results, the stock experienced a decline due to concerns over competitive pressures and a lack of specific guidance for 2027. Gross written premiums rose by 9% to $803 million, with fee-generating premiums increasing by 18%. The combined ratio stood at 89.9, with an ex-catastrophe combined ratio of 88.1.

Net investment income surged by 54% to $34 million, driven by higher fixed-income returns. Skyward Group remains optimistic about meeting its upper premium-growth guidance for 2026, highlighting its overall strength in specialty insurance businesses, which contributed to a 22% increase in operating income compared to the previous year.